Trump vs Musk Turns Ugly: Tesla Crashes, Loses $380 Billion in 2025 Bloodbath
Washington DC:
The bromance is officially over. Elon Musk and Donald Trump have gone from political allies to bitter rivals — and the fallout has nuked Tesla’s value, making it the worst-performing large-cap stock of 2025.
The spark? Trump’s aggressive “drill baby, drill” energy policy and the passing of his ‘One Big Beautiful Bill’ — a legislative sledgehammer to the EV industry. With the bill gutting tax breaks for electric vehicles, Musk’s Tesla lost more than $152 billion in a single day, and over $380 billion since January. Tesla’s stock has plunged 29.3%, dragging its market cap down to $917 billion — and potentially out of the global top 10.
How Did It Get This Bad?
- Musk had backed Trump’s campaign with “hundreds of millions” in funding and influence.
- After Trump’s win, Musk enjoyed unprecedented access to the White House — even dialling into calls with world leaders.
- But Trump’s love affair with oil and disdain for EVs clashed hard with Musk’s business empire.
The Breaking Point
Musk snapped after Trump revoked EV tax credits, threatened federal contracts for Tesla and SpaceX, and passed a bill Musk dubbed the “EV-Killer.” In retaliation, Musk exploded on X:
“Without me, Trump would have lost… Such ingratitude.”
He even called for Trump’s impeachment, floated JD Vance as a replacement, and accused the President of ties to Jeffrey Epstein, in a wild escalation.
The Fallout:
- Tesla lost $152B in a single trading session post-bill.
- Musk’s personal wealth dropped $9B, according to Bloomberg.
- Global investor confidence in EVs has been severely shaken.
- Trump has signaled more pain for green energy, doubling down on oil.
From Kingmaker to Outcast?
Musk’s political gamble now looks like a spectacular backfire. Once seen as a kingmaker in Washington, the billionaire is now being publicly iced out by the very system he helped build — and Tesla is paying the price.
News Source : Information for this article was gathered from a variety of reliable news outlets.
